The Super Retail Group Ltd (ASX: SUL) dividend was among the most generous on the S&P/ASX 200 Index (ASX: XJO) in FY 2021.
Thanks to its stellar sales growth and the doubling of its profits, for the 12 months ended 30 June, the retail conglomerate paid shareholders a total of 88 cents per share.
This comprises an interim 33 cents per share fully franked dividend and a fully franked final dividend of 55 cents per share.
Incredibly, this was up a whopping 351% year on year. Though, it is worth noting that due to COVID-19, Super Retail refrained from paying an interim dividend in FY 2020.
Based on the current Super Retail share price, this equates to an 11% dividend yield.
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Is the Super Retail dividend yield still 11%?
Unfortunately, it looks unlikely that the Super Retail dividend will be as generous in FY 2022.
This is due to the tough start the company made to the new financial year and the potential headwinds it has been facing from lockdowns and travel restrictions.
In respect to the former, when the company released its full year results, it revealed that like for like sales were down 14% during the first seven weeks of FY 2022.
Management also warned that its "outlook remains uncertain given risk of intermittent lockdowns and travel restrictions due to COVID-19."
In light of this, analysts are expecting its earnings and dividends to decline materially in FY 2022.
Though, that's not to say that the Super Retail dividend won't be attractive for income investors this year.
What is expected from Super Retail in FY 2022?
A recent note out of Credit Suisse reveals that it expects the Super Retail dividend to come in at 53 cents per share in FY 2022.
While this is a 40% reduction year on year, at the current Super Retail share price it still implies a fully franked yield of 4.2%.
In addition, the broker is forecasting earnings per share of 99 cents. If this proves accurate, it will mean the company's shares are changing hands for a very respectable ~13x FY 2022 earnings.
It's no wonder then that Credit Suisse has slapped an outperform rating and $14.41 price target on the company's shares.
All in all, this suggests that there is a total return on offer of almost 18% over the next 12 months.
